Coronavirus cases in Singapore have risen to roughly 280 in the past week. It’s a harsh reality that COVID-19 never went away. While experts argue whether the disease is a pandemic or endemic, COVID remains highly transmissible across the world. Many will be concerned about whether any potential outbreaks will affect the economy as they did in 2020 and 2021. Fortunately, these top five industries are resilient to the Coronavirus, with high chances of thriving rather than stagnating compared to other sectors.
1. Pharmaceuticals
Unsurprisingly, the pharmaceutical industry is pandemic-proof and arguably benefits the most from the pandemic. Names like Cipla, Pfizer, Johnson & Johnson, and AstraZeneca have become as ubiquitous as Nike, Amazon, and Google.
While there are many conspiracy theories around big pharma, the pandemic may have been a lot worse without their discovery of vaccines, treatment, and research. At the peak of COVID-19 outbreaks in 2020, the stocks of several pharmaceutical companies soared. The export value of pharma products also witnessed high growth, which has remained stable until today. Sectors related to pharmaceuticals include biotechnology and medical technology.
Of course, the pharmaceutical industry faces headwinds, such as finding the right talent and ensuring the availability of resources and expenses. Still, according to Statista, the global pharmaceutical market was estimated to be worth around $1.6 trillion in 2023.
Ultimately, the demand for scientific breakthroughs in more effective medications for COVID-19 will keep the pharma sector thriving.
2. Real Estate
The housing market poses a high barrier to entry for the average person worldwide. Still, real estate prices in many parts of the world are at record highs even after the pandemic’s ending. Even if another outbreak occurred, housing would still be in demand, reaffirming its place as an essential societal need.
There is an increasingly growing culture of staying at home and doing as much as possible without performing certain errands or going to the workplace. Speaking of the latter, remote work is increasingly becoming more common in response to economic challenges and the many time and cost benefits it offers.
Economic pessimists believe the real estate market will crash soon. Yet proponents argue such an event is unlikely due to the lower supply of property and new demographic trends, among other factors. Despite this, real estate is still a seller’s market in some parts of the globe.
3. Construction
Real estate and other infrastructure need the construction sector to survive. Of course, this industry was among the most brutal hit at the height of the Coronavirus. Still, the need for construction will continue despite challenges like labor shortages, safety concerns, and the cost of materials.
The construction and real estate markets share an intriguing relationship. For example, realizing the lull of being on lockdown at home has inspired people to infuse natural settings and outdoor spaces in their homes.
Construction will also benefit from the smart home boom (which is also favorable for real estate), where we should expect the creation of programmable thermostats, clap-activated lights, and other smart appliances.
As with other industries, construction is experiencing innovative developments that make it thrive under any condition, such as new building materials, digital collaboration software, drones, and robots.
4. E-commerce
E-commerce was one of the notable industries that thrived during the pandemic, while owners of brick-and-mortar stores suffered or got with the times. An innovative spirit also rose with novel offerings like contactless deliveries.
Ultimately, a large part of business success nowadays hinges on digital optimization. Companies who previously saw e-commerce as an extra now view it as necessary after the pandemic, redirecting budgets to enhance their online presence.
Given their proven resilience in trying times, large financial backers will now lean toward funding more e-commerce businesses than ever.
Like other industries, e-commerce is experiencing significant trends which should keep the market flourishing. The first is the rise of artificial technology to improve the customer experience. Other innovative developments include invisible payments, personalized advertising, subscription models, and virtual/augmented reality.
5. Trading
The last one on this list may be obvious to some — online trading. Using a reliable Singapore forex broker, anyone can trade the most popular financial markets. In addition to currencies, people may speculate on other assets like indices, cryptocurrencies, and commodities.
The first advantage of trading is that traders can capitalize on goods and world events. Take the 2020 pandemic, for instance. Since the virus outbreak decreased the output of many large corporations, their stock prices plummeted (while those of pharma companies rose, as explained earlier).
In another case, the prices of many cryptocurrencies surged in 2020 due to economic changes caused by the Coronavirus. Smart traders would have seen these opportunities through fundamental analysis.
Remoteness remains one of the keys to a genuinely pandemic-resistant industry. Thankfully, online trading is an activity that one can perform from or anywhere in the world with just an internet connection.
While online trading is speculative, it’s unique in allowing traders to take advantage of different market conditions.
Innovation in Pandemic-Proof Industries
All the industries discussed here were already on an upward trajectory. Yet, the recent pandemic reaffirmed their status as sectors worth exploring for purposes like investing. Still, what was once a hot market can quickly become dull without innovation. Fortunately, niches like real estate and e-commerce continue to experience structural shifts that make them more relevant.
